Supreme Court Disposes Revenue SLP Binding Reassessment

Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling

Issue

Whether reassessment notices issued under unamended Section 148 after April 1, 2021, for AYs 2013-14 and 2014-15 relying on TLA Act notifications are valid or time-barred under the substituted legal regime.

Facts

For Assessment Years 2013-14 and 2014-15, the Assessing Officer issued reassessment notices under the unamended Section 148 on or after April 1, 2021.
The Revenue relied upon Notification No. 20/2021 and Notification No. 38/2021 issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TLA Act) to extend the unamended provisions beyond March 31, 2021.
The High Court quashed the notices, holding that the Finance Act, 2021 substituted Sections 147–151 with a new scheme from April 1, 2021, and executive notifications under the subsidiary TLA Act could not override or extend repealed provisions of principal legislation.
The High Court further held that CBDT Instruction No. 1/2022 dated May 11, 2022, was ultra vires to the extent it permitted officers to act beyond the statutory mandate of the substituted regime.
It concluded that the standard 6-year limitation period for AYs 2013-14 and 2014-15 expired on March 31, 2020, and March 31, 2021, respectively, rendering notices issued thereafter time-barred.
The Revenue filed a Special Leave Petition (SLP) before the Supreme Court challenging the High Court judgment.

Decision

The Supreme Court held that the subject matter of the SLP was squarely covered by its landmark judgment in Union of India v. Rajeev Bansal (SC).
The Supreme Court held that the parties will be strictly governed by the reasons, declarations, and operational directions issued in the Rajeev Bansal judgment.
Consequently, the SLP filed by the Revenue was disposed of in terms of the Rajeev Bansal precedent (partly in favor of Revenue).

Key Takeaways

Supremacy of Rajeev Bansal Precedent: All pending reassessment disputes concerning notices issued under unamended Section 148 between April 1, 2021, and June 30, 2021, are governed by the Supreme Court’s ruling in Union of India v. Rajeev Bansal.
Interplay Between TLA Act and Finance Act, 2021: Executive notifications under delegated legislation (TLA Act) cannot override substantive statutory amendments brought in by principal legislation (Finance Act, 2021).
Deeming Mechanism Application: Under the Rajeev Bansal framework, notices issued under unamended Section 148 during the transitional period are treated as show-cause notices under Section 148A(b), subject to statutory limitation conditions under the new regime.

SUPREME COURT OF INDIA

Assistant Commissioner of Income-tax

Anil Kumar Bhikhabhai Virani^*

J.B. PARDIWALA and K. Vinod Chandran, JJ.

SLP (CIVIL) Diary No.44495 OF 2024^†

JULY 20, 2026

N. Venkataraman, A.S.G., Sudarshan Lamba, AOR, V.C. Bharathi, Rajan Kumar Choursia, Ms. Vidushi Pandey, Aman Jha and Ms. Nasadiya Singh, Advs. for the Petitioner.

ORDER

1. Delay condoned.

2. This Special Leave Petition(s) is squarely covered by the Judgment of this Court rendered on 3-10-2024 in UOI v. Rajeev Bansal (SC)/(Civil Appeal No.8629/2024 etc.) 2024 (11) Scale 473.

3. In view of the above, the petition(s) filed by the Revenue is disposed of. The assessee will be governed by reasons discussed in the said Judgment.

4. The assessing officers will dispose of the objections in terms of the law laid down by this Court. Thereafter, the assessee who is aggrieved will be at liberty to pursue all the rights and remedies in accordance with law, save and except for the issues which have been concluded in the Judgment.

5. Pending application(s), if any, stands disposed of